BERLIN, April 27 (Reuters) – Mercedes-Benz on Wednesday reported first-quarter earnings before interest and tax (EBIT) up 11% to 5.2 billion euros, even as passenger car deliveries fell 10%, with high prices offsetting supply problems.
The Mercedes-Benz Cars automotive division posted an adjusted profit margin of 16.4%, compared to 12.6% for Mercedes-Benz Vans.
The premium automaker confirmed its guidance for the year, expecting an adjusted Ebit margin of 11.5% to 13% for the car division, but warned that the worsening effects of the war in Ukraine, COVID-19 related lockdowns and semiconductor shortages could alter its outlook.
The adjustment of its business activities in Russia, where Mercedes-Benz suspended operations after the invasion of Ukraine, resulted in expenses of 709 million euros.
“An escalation from the current situation could have significant negative consequences for Mercedes-Benz’s business,” the company said in a statement.
She expects the shortage of semiconductors and other products to continue to impact results throughout the year, pointing to the COVID-19-related lockdown in China as a cause for concern. additional uncertainty for production and market development. (Report Victoria Waldersee, French version Lou Phily; told by Kate Entinger)